Monday, May 23, 2005

Big dipper: Newspaper market share

Newspapers lost the most advertising market share in the last five years, while online gained the most.

New statistics from Universal McCann, as reported in the New York Times, show the magnitude of the respective swings.

While over-all advertising expenditures increased by 19% to an estimated $201.6 billion between 1999 and 2004, newspaper ad revenues remained essentially flat at $46.6 billion at the end of the period.

With newspaper ad bookings holding steady in an expanding market, their share of the total market fell by 18.8% in the five-year period.

Online advertising in the same interval soared by 283% to almost $7 billion, increasing its share of the total market by 204%.

Behind online, the next biggest gainer was cable TV advertising, whose market share rose 79%. The only other winner was direct-mail, which gained 2.4% in share.

Broadcast TV lost 15% of market share, while magazines and radio respectively fell 9.9% and 5.6% in share.

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About Me

Alan D. Mutter is perhaps the only CEO in Silicon Valley who knows how to set type one letter at a time.
Mutter began his career as a newspaper columnist and editor at the Chicago Daily News and later rose to City Editor of the Chicago Sun-Times. In 1984, he became No. 2 editor of the San Francisco Chronicle.
He left the newspaper business in 1988 to join InterMedia Partners, a start-up that became one of the largest cable-TV companies in the U.S.
Mutter was the COO of InterMedia when he moved to Silicon Valley in 1996 to join the first of the three start-up companies he led as CEO.
The companies he headed were a pioneering Internet service provider and two enterprise-software companies.
Mutter now is a consultant specializing in corporate initiatives and new media ventures involving journalism and technology. He ordinarily does not write about clients or subjects that will affect their interests. In the rare event he does, this will be fully disclosed.
Mutter also is on the adjunct faculty of the Graduate School of Journalism at the University of California at Berkeley.